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For millennia, gold has proven to be a consistently beneficial hedge against tumult and economic uncertainty. In view of these uncertain times, it is unsurprising that the price of gold has soared, and savvy investors are allotting a portion of their portfolios to the glittering precious metal. Yet, gold storage is a question on many investors’ minds.
Suffice to say, squirreling your gold away in a hole in your backyard is not your best option. Instead, you need a vaulting company to securely store your gold in an IRS-approved facility. Luckily, there are companies that provide state-of-the-art offshore storage vaults for gold. In this article, we’ll discuss the top-ranked gold storage companies.
Offshore Gold Storage Considerations
There are a few components to factor in when weighing your offshore gold storage options.
Stability
The political and economic stability of the country where the gold storage vault is located is critical. It goes without saying that any nation which does not meet these criteria is not a good option. Gold confiscation can prove to be a tangible risk in any country experiencing instability.
Security
The security of the company’s vault facility is of paramount importance for obvious reasons. One wants to ensure that there will not be a security breach in the storage vault, resulting in the pilfering of your precious metals.
Infrastructure
A functioning, well-maintained framework of roads, airports, and buildings, including the company’s storage vault facility, is likewise essential to keep your gold safe and accessible.
Privacy
The national government of the country where the storage vault is located must respect the investor’s right to gold ownership, and likewise, the privacy entailed with this ownership.
Our Top-Ranked Gold Storage Companies for Investors
Gold Switzerland
Gold Switzerland has been a highly revered bullion investment and storage services company since 1999. The company offers secure and safe state-of-the-art segregated storage through private vault operators located in Switzerland, Hong Kong, and Singapore. These storage vault locations are specifically the Swiss Deep Mountain Vault, the Zurich Airport vault, the Hong Kong International Airport vault, and the Singapore Freeport vault. The annual storage fees are 1.25% per annum.
Gold Switzerland offers its clientele a number of unique options when it comes to storage facilities. For instance, clients are permitted to send their attorney or accountant for a private inspection of gold holdings. Likewise, they have direct access to their gold holdings which can be wholly withdrawn even after business hours.
SWP Cayman
SWP Cayman is an exceptional precious metals dealer and storage provider situated in the Cayman Islands. The Cayman Islands is revered as one of the safest jurisdictions to safely store gold and other precious metals on Earth. Founded in 2015, Strategic Wealth Preservation Cayman (as is its full moniker) has become renowned for precious metals acquisition and storage for individual investors, corporations, and trusts.
SWP Cayman has the esteemed distinction of being deemed an IRS-approved gold IRA storage facility, an approved distributor by the Royal Mint of England, an approved vendor by the Perth Mint, which is the official bullion mint of Australia.
Clients have the option for segregated storage, and can personally inspect or completely withdraw their gold holdings with only 24 hours advance notice. SWP Cayman has annual storage costs of 0.5% to 0.85% annually depending on the value of the account and type of precious metals. Gold valued at up to $200,000 is 0.65%, while accounts valued at over $200,000 are 0.5% per year.
Swiss Gold Safe
Swiss Gold Safe has the unique distinction amongst this group as operating solely as a storage company. Founded in 2006, in addition to storing precious metals, it likewise stores everything from works of art to gemstones. The company has highly secure, state-of-the-art vault facilities in Switzerland and Liechtenstein.
Swiss Gold Safe offers segregated storage of your gold at their facilities, in addition to having the esteemed Lloyds of London as its insurance provider. Moreover, if clients so choose, they do have the option of purchasing gold and other precious metals through the company’s broker-partner, Echtgeld Limited of Switzerland. The annual storage fees for gold are varied depending on the size of the account. The annual fee for gold valued at up to 100,000 Swiss Francs (CHf), or $109,616.90 USD is 0.75% and decreases with the account value.
Expert Advice On Offshore Gold Storage
“In this post-recession world of all gold everything, some of our clients have inquired about offshore gold storage, as part of diverse offshore planning. We believe the risk is too high for most average investors. Offshore gold ownership has added risk that more traditional offshore planning does not.
Situs (Location)
The locale of the gold storage is of paramount importance. We don’t recommend Offshore planning, unless you can afford to physically fly to the Situs to inspect facilities and meet the companies and professionals you are working with. The suitability of the situs is key. There are a multitude of factors we look at: political stability; economic stability; taxes, costs, and fees; prospects for future taxation; tax treaties; exchange controls; business environment; legal framework; transportation facilities; and language. Does the situs give you tax benefit? These are all things a client should consider.
Physical/Tangible Asset
Gold is a physical/tangible asset. If it’s held domestically, you can physically be in possession or alternatively visit the gold with little to no cost. Unlike intangibles or securities, you have to be more aware of the security the storage facility is using. You need to ask questions such as: How is it going to be stored? Is it stored in an unsegregated storage area (this means your gold is in a holding place with gold owned by others)? Is your gold in its own storage vault? Is your gold marked with a unique identifier such as a serial number. Regardless, remember gold can always be smelted and re-forged into another bar.
Fraud
Fraud prevention is key. Beware of fraudulent companies, with fancy websites and letterhead. You will want to work with a recommended facility. You also must be cautious with employees of the institution absconding with your physical asset. Asset protection situs also have a downside, in that they provide asset protection for potential fraudsters, and make tracking down tangible assets near impossible.
Fees
Offshore facilities fees range from 0.5% to 1.0% annually. Gold is not an incoming producing or self-replicating asset. It does not grow in quantity. As such, you need to weigh the long-term cost of storing the asset, against your forecast of the value of the asset. We would not recommend, just parking a set amount one time, and let the fees diminish your holding. Look to your financial planner’s advice on how to best mitigate this cost, or have it absorbed by other assets you control.”
Shann M. Chaudhry, Principal Attorney & Managing Member, Shann M. Chaudhry, Esq., Attorney at Law, PLLC
Looking for the Best Gold Storage Option?
Given the profound uncertainties that we collectively are facing, there has never been a better time than now to invest in gold. However, selecting a trustworthy company that offers safe and secure storage for your glittering precious metal is paramount.
For investors interested in utilizing offshore facilities, have a look at our top companies for offshore gold investment and storage to get a better understanding of your options. Lastly, as with any investment, always do your due diligence and consult a financial professional.
Sarah Bauder is a financial writer with over a decade of experience at numerous online publications, writing about alternative investments, retirement, US politics, world economy and more.
